Hey Global Investor, here's what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Wednesday Close) 3,374.85 −14.93 (0.44%)
NASDAQ (Wednesday Close) 11,146.46 −64.38 (0.57%)
FTSE 100 (5 PM IST) 6088.13 +11.51 (+0.18%)
NIFTY 50 (Today's Close) 11,307.75 −100.65 (0.88%)
USDINR (5 PM IST) 74.83 (1 Year +4.61%)
🎯Target Hits the Bull’s Eye!
Target Corporation blew past Wall Street’s expectations when it announced the results for fiscal Q2. The company gained millions of new customers online, and generated $1.7B in profits, reflecting a mammoth 80.3% rise over the same period last year.
What Happened? Target, in its latest earnings call, reported massive Q2 profits. Online sales, as well as sales in stores open for at least a year, rose 24.3% in the most recent quarter. This is an all-time high for the retail giant, whose same-store sales also shot up 10.9%, and digital sales tripled compared to the year-ago quarter.
Key Numbers:
Adjusted earnings per share: $3.38 vs. $1.62 expected
Revenue: $23B vs. $20.09B expected
Sales growth: 24.3% vs 7.6% expected
CEO Brian Cornell underlined how the retailer’s vast mix of merchandise and online options resonated with its consumers who were demanding a convenient and safe shopping experience owing to the pandemic. He also highlighted the company’s “essential retailer” tag that allowed its stores to remain open during the lockdown.
During Q2, sales across all five merchandise categories were up. Electronics posted a 70% Y-o-Y growth as consumers purchased gaming consoles and home office items. The home segment grew at 30% while the remaining three segments - beauty, food & beverages, and essentials, grew at 20% Y-o-Y.
Market Reaction: The stock rallied 12.65% to a 52-week high of $154.69 during hours and finally closing at $154.22.
Target Snapshot 📈
TGT $154.22 +17.32 (+12.65%)
Analyst Rating (27 Ratings) BUY 59% HOLD 33% SELL 8%
Newsworthy 📰
Shhh! It's a Secret!: Airbnb has confidentially filed to go public.
Please Try Again Later: Gmail, Docs, Drive, and more Google services hit by widespread disruption (GOOG -0.71%)
FB Wins the 'Face' Off: Facebook wins preliminary approval to settle facial recognition lawsuit (FB +0.10%)
Later Today 🕒
6:00 PM IST: Initial jobless claims
6:00 PM IST: Continuing jobless claims
7:30 PM IST: Leading economic indicators
Before Market Open: Alibaba Group Holding Ltd. earnings (BABA)
Fun Fact of The Day 🌞
The universe is 13.8 billion years old
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